New York Criminal Lawyer Blog

The courtroom drama continues in the ever widening Medical Mafia case in Las Vegas. The shocking FBI case made headlines and weakened an already hesitant trust in insurance companies and the medical establishment by Americans with what is now known to have been a blatant deception and fraud by some of the country’s top physicians, attorneys and insurance companies that took billions of dollars from insurance companies and patients as well as strong armed confused and worried patients into having surgeries that they did not need.

Now, a central figure in the case who was scheduled to go before a grand jury and answer some tough questions about some of the other people involved has decided that he is not talking, and as a result he is now being held in contempt of court. Though the man is already in custody, having been convicted for his role in the Medical Mafia, he will receive an additional 18 month sentence if he does not change his tune and cooperate. Medicaid Fraud is involved in this case.

Several physicians have testified that they participated in the scheme, in which attorneys and physicians blindsided confused patients with unnecessary procedures and medical services, claiming that they were working on the behalf of the patient, yet all the while bilking them and their insurance companies for services and surgeries that they did not need. As more people come forward and more information is known, the nature of the case could change substantially as more details are brought to light. There are cases like this in Manhattan and Long Island.

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Several obstetricians at the hospital, which specializing in high-risk pregnancies have been threatened with insurance dismissal by their indemnity provider, a malpractice insurance group.
On February 10, an official letter of warning was sent to 8 of the 13 active doctors of the hospital with the claim that a third party had encouraged the insurance group to not renew coverage for the hospital. A New York Criminal Lawyer notes that according to the letter, the “method of practice” and “practice environment” common to the doctors at the hospital was deemed “predictive of future claims in excess of the norm, and makes insuring you an unreasonable burden to the other policyholders.” The letter had no indication of the details of malpractice on the part of the doctors. However, this is a serious development which has far-reaching consequences for many.
If the insurance of these doctors were suddenly discontinued, surrounding hospitals that also operate in the Bronx area would find themselves unprepared for and overloaded with a massive influx of pregnant women seeking to give birth in their facilities. As observed by a New York Criminal Lawyer, the hospital in question delivers around 2,700 babies a year on average, mostly high-risk in nature. The details of this “high risk” depiction seem to include women who are teenagers, or suffer from medical issues such as high blood pressure and diabetes. Due to these circumstances, the chief medical officer of another hospital in the area was quoted as saying, “We don’t have the capacity currently to handle these babies... I look at it now as a borough-wide problem. We’d have to come together with the other providers to figure out what to do.”
At the same time, a parallel situation is brewing. It seems that a task force working for the governor of New York has pursued a measure which would limit the amount of compensation received in cases of malpractice that centered on “non-economic damages” such as physical suffering on the part of the afflicted individual. However, a New York City Criminal Lawyer realizes that trial lawyers are strongly opposed to this measure; they claim that it would seriously limit the damages awarded to families steeped in poverty. No Fraud has been charged or intimated but in New York City and Long Island this could be a possibility if certain facts are uncovered.
The volatility of this issue is evident. It is likely that many on both side of this debate over insurance for high-risk pregnancies will be affected: mothers, doctors, and insurance providers.

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A senior associate at a major law firm in Washington, D.C. was arrested by the FBI on federal securities fraud charges, according to Manhattan Criminal Lawyers. It may be that it is all tied in to a $30 million plan that involved insider trading regarding pending corporate mergers.
The senior associate will be arraigned in Newark, along with a banker who has been charged with using the illegal information the associate provided. The U.S. Attorney and FBI officials will soon release statements. The attorneys for the accused have yet to make any comment on the matter.
Authorities in the U.S. Attorney’s office say the scheme had been going on for decades. It stole information not only from the firm the associate worked for, but from several other firms at which the associate had previously worked.
The accused pair invested more than $109 million dollars in their scheme, which yielded profits of more than $32.2 before they were caught. In New York City and Long Island, fraud cases are common and many wind up going to trial.
The senior associate was a graduate of NYU Law School and was hired by three major law firms, proving he had what it takes to do the job legitimately. He even attempted to avoid detection of his criminal activity by using pay phones and prepaid cellphones, which were later discarded, when discussing insider trading.
Manhattan Criminal Lawyers believe there may have been wiretap evidence anyway, because the associate and his banker accomplice were charged with 17 counts, including 11 for insider trading, four more for obstruction of justice, and two counts of conspiracy to commit insider trading and to commit money laundering.
Details are still forthcoming about the case, with a number of people who are interested in such legal matters, keeping a close eye on events as they unfold. A press conference has been announced, at which further details will be given by the proper authorities. Until then, information on the pair is sparse, at best, at least regarding the case. Personal details, especially about the accused senior associate, are constantly coming to the fore, as acquaintances chime in with something new.

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